Administration Releases New Guidance on COVID-19 Small Business Recovery Resources
As congressional negotiators continue talks on the next round of coronavirus stimulus relief, including an injection of additional funds for small business relief programs, the Department of the Treasury and Small Business Administration (SBA) have released additional information resources and guidance on how small businesses and other qualifying organizations can utilize the SBA’s Paycheck Protection Program, as well as additional guidance resources on other programs intended to provide relief from the impacts of COVID-19 emergency shutdown orders.
The CARES Act’s Paycheck Protection Program (PPP) provisions authorized the SBA to make up to $349 billion in loans of up to $10 million to businesses that were operating and had employees on March 1, 2020. The loans can be forgiven if businesses meet certain criteria including:
- Using loan proceeds to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8-week period after the loan is made; and
- Maintaining employee and compensation levels.
The SBA has now issued an interim final rule with details on the implementation of the PPP. Despite initial delays in rolling out funding through local lenders, the SBA is encouraging applicants to apply early as the program still only runs through June 30, 2020.
The Department of the Treasury has also released a resource center page for Assistance for Small Business with information on Paycheck Protection Program eligibility and a Frequently Asked Questions guide with detailed information on application requirements.
The White House Office of Management and Budget has already requested an additional $251 billion for the program; Congress continues negotiations on extending both the length of the eligible lending period and total funding available under the PPP program.
ASME will continue to follow language.